I believe the answer is: D. excise tax
.
Purchase tax refers to the tax that must be paid by the buyer whenever they purchase a certain product. One of the example would be an excise tax.
Excise tax is the tax that buyers must paid when we buy a product that create some sort of negative effect to the society or environment. Example of an excise tax would be gasoline tax.
Answer:
$ 48,000
$3,200
Explanation:
Since C corporations are separate taxable entities, Cassowary Corporation will report the operating income and tax-exempt income. An S corporation is a tax reporting entity. Therefore, Barbara will report ordinary business income of $ 48,000 and tax-exempt $ 3,200.
Reason -
Business income = 120,000×40%
= 
= $48,000
⇒Business income = $48,000
Tax-exempt = 8,000×40%
= 
= $3,200
⇒Tax-exempt = $3,200
(b) Increased effectiveness of collection methods - It will increase the turnover ratio and decrease the days to collect.
Effectiveness is the functionality of producing a preferred result or the capability to supply preferred output. whilst something is deemed powerful, way it has a supposed or predicted outcome, or produces a deep, vibrant effect.
Effectiveness is the principle noun form of the adjective effective, this means “ok to accomplish a cause; producing the supposed or predicted end result.” (another, less common noun form of effective is efficiency.).
Learn more about effectiveness here: brainly.com/question/14905866
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Answer: F
Explanation: Because all of them except D is valid
Answer:
the business will pay for the supplies at a later time
a liability has been incurred.
the Accounts Payable account will be increased.
Explanation:
In the case when the supplies are purchased on credit, the following entry should be passed
Supplies Dr XXXX
To Account payable XXXX
(Being supplies purchased on credit is recorded)
here supplies is debited as it increased the asset and credited the account payable as it also increased the liabilities
So the following options should be chosen
1. The business would pay at a later time
2. Liability is incurred
2. The account payable is increased
